On September 30, 1999, the Company amended the terms of the Company's bank financing agreement. Pursuant to the amended terms, the two facilities previously existing under the agreement, a $5,000,000 line of credit facility and a $10,000,000 revolving credit loan, were consolidated into one $15,000,000 revolving credit facility and the expiration date of the consolidated facility was extended until September 2002.

On September 28, 2000, the Company and its affiliates amended the terms of the Company's bank financing agreement. Pursuant to the amended terms, the $15,000,000 credit facility was increased to $30,000,000 and the expiration date of the facility was extended from September 2002 until September 2003.

The consolidated facility is unsecured and bears interest at a variable rate of the London Interbank Offered Rate (LIBOR) plus 1.25% per annum on auto-borrow advances up to $7,000,000 and a variable rate of either the prime rate plus an applicable margin of up to 0.25% per annum, or LIBOR plus an applicable margin of 1.25% to 1.75% per annum, based upon maintenance of certain financial ratios, on the remaining balance of the facility.

The weighted average interest rate on borrowings under the credit facility was 8.78%, 6.94% and 6.53% for fiscal years 2001, 2000 and 1999, respectively. Interest expense on the credit facility for fiscal years 2001, 2000 and 1999 totaled $600,000, $156,400 and $128,300, respectively. Average borrowings under the credit facility totaled $6,833,200, $2,228,600 and $2,254,500, maximum borrowings totaled $11,000,000, $5,862,000 and $5,000,000 for fiscal years 2001, 2000 and 1999, respectively. The outstanding balance under the credit facility as of April 1, 2001 and March 26, 2000 was $10,011,000 and $5,862,000, respectively.

The terms of the credit facility require the Company to meet certain financial covenants and ratios and contain other limitations, including a restriction on dividend payments. The Company was in compliance with these terms during fiscal years 2001, 2000 and 1999.